Saturday, June 9, 2012

Lack of Homes for sale in Phoenix Arizona ... - Phoenix Real Estate

by Ron Wilczek on June 8, 2012

The number of homes for sale in the Phoenix metropolitan area has continued on a 20 month decline. The decrease was one of the smaller 3-digit declines we?ve had in awhile, but the choices keep going down for home buyers. Check here for the figures: Phoenix Real Estate Listings. The below chart is a visual depiction. The chart is interactive so you can hover over the bullet points to display the numbers:

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The ?red? line on top shows the active listings and the ?blue? line shows the number of sales.

NOTE: The numbers that correspond to active listings represent the lowest level of listings during the month, whereas the numbers in our Phoenix Housing Tracker? indicate the listings on the 1st or 2nd day of each month.

The gap between listings and sales is getting very narrow. Roughly 75% all listings were sold in May. In some cites over 100% of listings are being sold which is drying up the reserves. See this page for details: Phoenix Real Estate Housing Tracker.

I?ll add some insight from Mike Orr who runs the highly respected Cromford Report:

  • ?Prices have run up so much in the last three months, as fast as at any time in history, that there may be a danger of them getting ahead of themselves. Inventory continues to decline and buyer desperation hits new heights each week??
  • ?As prices continue to rise, demand will weaken and more sellers will be motivated to enter the market. What we don?t yet know is how far they will have to rise before balance can be restored between supply and demand.?

And finally, a comment from Mike Orr that could be construed to be about the lack of ?shadow inventory? (more or less) :

  • ?According to the latest figures from Lender Processing Services, Arizona now ranks 35th among the states for non-current loans at 9.0%, having fallen below Missouri and Texas. It will take quite a bit of effort to sink lower down the delinquency table, as Kansas is our next target well below us at 8.5%. The national average is 11.3% so Arizona is already significantly better than the average for the USA.?

All things considered it?s getting tougher to get a house in this market with all the competition for the best homes.

Article by Ron Wilczek

Ron has written 95 awesome articles.

Ron Wilczek has been a Real Estate Agent since 1999 and the broker / owner of Metro Phoenix Homes since 2009. He represents clients in resale, new home construction, investment homes, and multi-family investments.

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